Do business in malls really make money

Finding a shopping center made easy!

advantagesdisadvantage

+ The building is one Capital investment. Depending on the location and occupancy, it can gain in value and be sold more expensively.

- It arise high initial costwhich can usually only be financed with long-term loans.+ The owner can Specify the amount of rent and choose your tenants yourself.- The owner must be strive for a good occupancy rate and if possible find a tenant for every restaurant. + The owner scores regular rental income and can after the end of the financing phase high profits achieve.- The owner is the contact person for a large number of tenants and may also have to mediate between them. He has the Represent the interests of many parties.+ The owner enters limited business risk. He is not responsible for the success of the individual businesses, but receives regular rental income regardless of their turnover. In the case of large centers, individual temporary vacancies are irrelevant.- Rents cannot be increased arbitrarily and there are no financial participation in the success of the individual companies. In addition, the landlord must take measures to increase the attractiveness of the location and, for example, carry out market research and marketing strategies. In this sense, he is not responsible for the success of the individual transactions, but for the overall concept.As soon as the financing loan has been repaid, the company has one very high value and good credit. This makes it easier to apply for new loans.- Empty premises reduce rental income. If the business does not pay off, it can be difficult to sell the building due to the limited number of interested parties.+ By buying one established existing property the owner can save himself long construction times and earn money directly by renting the business premises.- It's own mall expensive, since repairs and renewals are constantly necessary. These costs cannot be passed on to the tenants.+ The object can be written off and thus reduces the tax burden.- An existing property restricts the planning options, it is possible that planned renovations cannot be carried out due to statics or space.